Minor International Public Company Limited (SET: MINT) has announced core net profit of THB 5,514 million for the first nine months of 2024, a 19% year-on-year increase. Core EBITDA grew 11% year-on-year to THB 33,623 million, powered by a 9% rise in core revenue driven by outstanding performances in MINT’s hospitality and restaurant businesses. This strong growth was driven by effective revenue optimization, resulting in increased ADR and RevPAR across MINT’s hotel portfolio, together with sustained cost discipline.
Robust Hospitality Growth Across Regions
In Q324, MINT’s hotel operations delivered strong growth, fueled by robust demand in both business and leisure travel across Europe. Minor Hotels Europe & Americas achieved a notable 9% year-on-year RevPAR increase and a 7% ADR increase. The high season spurred gains in Spain, Central Europe and the Benelux region, supported by rising visitor numbers from the US and UK. Against this positive backdrop, MINT successfully executed strategic pricing and marketing initiatives to ensure that it capitalized fully on the strong travel trends.
In Thailand, despite the seasonal rains, RevPAR grew by 12%, thanks to a steady influx of international tourists and a thriving domestic travel. MINT’s yield optimization strategy drove a 9% ADR increase and a 2% occupancy increase, showcasing the company’s ability to attract diverse and lucrative traveler segments year-round.
MINT has further expanded its hotel portfolio in 2024 with new properties, including NH Hotels in Paris and South Africa, Avani in Amsterdam and NH Collection in Helsinki. New launches in Asia include Anantara Jaipur in India, NH Hotels in the Maldives, Sri Lanka, and Bangkok, as well as NH Collection in Samui. With a focus on rotation toward a more asset-light model, half of these new openings are managed hotel properties, aligning with MINT’s strategy to boost profitability while building on its management infrastructure to grow its footprint in key high-growth markets.
Restaurant Business Delivers Resilient Growth
Minor Food continues to demonstrate resilience and growth, achieving total system sales (TSS) increases of 6% in Thailand and 8% in Singapore. Expansion across key brands such as Dairy Queen, Swensen’s, and GAGA, together with innovative product launches, have driven to this performance. The introduction of Dairy Queen’s Belgian chocolate platform has been a standout success, driving both customer count and spending. Additionally, Minor Food’s launch of BatterCatch, a new fish & chips concept in Singapore, has been very well received in the market and underscores Minor Food’s ability to drive innovation and launch successful new concepts. With new GAGA stores in Indonesia and the celebration of GAGA’s 50th location in Thailand, Minor Food is well-positioned to capitalize on increasing demand as the year-end spending momentum approaches.
Financial Highlights
MINT delivered strong core profit growth and margin expansion in 3Q24, driven by yield optimization, disciplined cost management, and robust demand across its hotel and restaurant segments. Including non-core items, MINT’s reported revenue for 9M24 grew by 10% y-y to THB 124,473 million, with reported EBITDA up 8% y-y to THB 32,545 million. The reported NPAT of THB 4,119 million was temporarily impacted by non-cash FX effects from heightened currency volatility on derivatives, specifically in 3Q24. These accounting effects, whether gains or losses, will be neutralized upon the settlement of derivative contracts, which are strategically used to reduce funding costs.
Optimistic Outlook for 4Q24
With the high season ahead, MINT is well-positioned to capture strong demand across its key markets. Forward bookings in popular destinations like Thailand and Bali are on the rise, driven by exclusive holiday experiences targeted to high-end travelers. In Europe, corporate travel demand remains steady and December holiday bookings are gaining momentum.
Minor Food is also preparing for a dynamic Q4 with special seasonal menus and campaigns designed to boost in-store traffic and customer spend during the festive period. In Thailand, holiday offerings from brands like Swensen’s, Sizzler, and The Pizza Company are set to drive increased customer engagement and boost average ticket size.
CEO Statement
Dillip Rajakarier, MINT’s Group CEO, shared his optimism for the upcoming months, stating, “Our diversified portfolio is finely tuned to meet the unique demands of this holiday season. With strategic campaigns and an emphasis on delivering memorable experiences, we’re entering 4Q24 with confidence, focused on delivering outstanding experiences for our guests and outstanding results for our stakeholders and partners.”
He added, “Our financial health remains a priority. This quarter, we reduced interest-bearing debt by THB 7.6 billion, further strengthening our balance sheet. We also issued an additional interim dividend, bringing total dividends paid in 2024 to THB 0.57 per share, reflecting our business’ strong cash generation and our commitment to delivering returns to shareholders.”
